Creating A College Funding Strategy

Saving for college isn't easy, but the earlier you start the better off you'll be.
For example, if you save $60 a month for 17 years earning 8% per year, you will have over $25,000 by the time college begins!
Taxes will reduce the amount of the portfolio.

There are several savings and investment strategies that can help you accrue
money for college.

Planning Ideas,

Below are some savings ideas that my help you better prepare for the task of
funding your children's college educations.

Assess your needs. In order to know how much to save, you need to estimate
the future cost of tuition at public and private institutions.

Save early and often. The sooner you begin to set aside funds for college,
the less you will have to save. Allow your investments to grow along with
your child.

Set up a systematic savings plan. Try to save monthly or quarterly, just
as you would if you were paying off a car or a mortgage.

Keep a separate college account. The most popular are custodial accounts.
These accounts ease the tax burden by allowing parents to shift some of their
assets to the child at the child's lower tax rate.

Involve the family. Children are more aware of family finances and accept
responsibility when they are involved. It also becomes easier for you if the
child is able to contribute to the fund.

Create an incentive program with your child. Offer to match the money the child
makes to his own account. Teach him or her to work and help contribute to their
fund - they will value their education more.

Material discussed is meant for general illustration and/or informational purposes
only and it is not to be construed as tax, legal, or investment advice. Although
the information has been gathered from sources believed to be reliable, please
note that individual situations can vary therefore, the information should be
relied upon when coordinated with individual professional advice.

This web site may contain concepts that have legal, accounting and tax implications. It is not intended to provide legal, accounting or tax advice. You may wish to consult a competent attorney, tax advisor, or accountant.